PIMCO Active Bond Exchange-Traded Fund

BOND

Market cap $6.94B

PIMCO is broadening its ETF lineup. It has launched a new strategy that blends passive equity exposure with active fixed income management.

Heirloom Wealth Management added 40,231 shares, with an estimated $4.27 million increase in position value. The trade represented an approximately 9% change relative to 13F reportable assets under management.

The PIMCO Active Bond ETF (BOND) uses an active, multi-sector fixed-income approach for yield enhancement and capital appreciation. BOND has underperformed its benchmark proxy, AGG ETF, in price return but outperformed in total return due to its consistent monthly distributions. The ETF's portfolio exposure is dynamic, with management adjusting allocations based on market outlook.

PIMCO Active Bond ETF (BOND) continues to deliver strong returns in 2025, outperforming typical intermediate duration fixed income vehicles. BOND benefits from a favorable macro environment, with investment grade bonds, Agency MBS, and Treasuries driving robust performance. We maintain a bullish outlook on BOND through 2026, citing its resilience and attractive risk-adjusted return profile.

Your Advocates Ltd. sold 212,741 shares of BOND, estimated at $19.63 million based on quarterly average price.

Bought 87,752 shares, with an estimated transaction value of $8.10 million based on the average price for the quarter Change equals 1.49% of the fund's reportable assets under management (AUM) Post-trade position: 187,980 shares valued at $17.55 million The stake represents 3.22% of the fund's AUM, placing it outside the fund's top five holdings

BOND is an actively-managed investment-grade bond ETF managed by PIMCO. PIMCO Active Bond Exchange-Traded Fund ETF compares favorably to its benchmark, somewhat unfavorably to its peers, including IGEB. Good choice, but there are even better, cheaper bond ETFs out there.

PIMCO Active Bond ETF offers active, diversified fixed-income exposure with a focus on risk control and long-term income and capital appreciation. Current market conditions favor agency mortgage-backed securities (MBS), as their premium over investment-grade corporates is historically attractive, supporting an overweight in MBS. MBS have demonstrated defensive characteristics during equity market downturns, providing stability and income when most needed in a portfolio.

BOND has nearly doubled its AUM to $5.5 billion in the past two years and has outperformed its actively managed peers and passive benchmark. The fund primarily invests in investment-grade MBS bonds and Treasuries, with a portfolio duration of 6.5 years, placing it in the intermediate duration category. While BOND's annualized volatility of 7.4% is higher than the Bloomberg U.S. Aggregate Index's 5%, its superior total return performance suggests that the active management's risk-taking has been justified.

VettaFi sat down with Jerome Schneider, PIMCO's Head of Short-Term Strategies, at Exchange. Schneider discussed the potential benefits of active management and PIMCO's priorities in the space.